Competing Offers

So, the spring market is in full swing, though it’s a different animal than it has been in the recent past. The record low inventory here in Atlanta has really changed the way things are done. Just about every deal I’ve done recently has involved multiple offers, and it seems not everyone has figured out how to navigate those waters.

Let me first take a quick look at it from the seller’s side, then we can focus more on the buyers, who are in the toughest position. Although the lack of inventory has bumped prices up somewhat, pricing accurately is still the key in getting your house sold. In most cases, the house will still have to be appraised by a lender, so you don’t want to end up with a problem down the line.

I recently listed a home in my neighborhood, and got a full-price offer the first day it was listed. My seller, of course, wanted to know if we underpriced the home. Most definitely not. If the home was underpriced, which I’ve seen some agents do, there would have been several offers on my desk by the end of the day, and most would be above the asking price. It’s happening that quickly around here. We did end up with a back-up contract, which is great insurance for a seller.

Now, back to the buyers. What can a buyer do to get a home when there’s so much competition out there? There are several things I can recommend that will increase your chances of getting the home you want:

·      Get a buyer’s agent! In this market, you need someone who has immediate access to listings the minute they hit the market. A good buyer’s agent will also network to find homes before they get listed, which is a huge advantage.

·      Get your financial house in order! You must have a prequalification letter to submit with your offer or it won’t even be considered. Don’t wait until the last minute.

·      Know the values of the homes in the neighborhood. Your agent can show you comps to help determine the value of a home, but it helps if you’ve seen enough other homes to know that it’s worth it to you.

·      Act quickly! Don’t wait a day or two to see it, and if you’re interested, don’t wait to make that offer. You’ll be left behind.

·      Put your best foot forward. Now is not the time to “see what you can get it for.” If the list price is reasonable, don’t hesitate to offer full price. If you know you are in a competing offer situation, you may want to make the offer above the asking price, as long as the value is there.

·      Make a clean offer. In other words, don’t add a bunch of unnecessary contingencies and special stipulations. A seller wants to see the most straightforward offer possible, with the least amount of contingencies possible.

·      Consider all aspects of your offer carefully. The price is not the only factor in a seller’s decision to pick an offer. Can you close quickly? Or if the seller needs to stay longer, can you accommodate them? How long do you really need for a due-diligence period? Make it as short as possible.

In the end, it is fair to say that this is a tough market for buyers, but if you’re patient, you are prepared and you play your cards right, you’ll get the home you always wanted.